ESTATE DUTY

What's New?

21 February 2018 - Estate Duty rate increases from 20% to 25% on dutiable amount of estates of more than R30 million.

What is Estate Duty?

Estate Duty is payable on the estate of every person who dies and whose nett estate is in excess of R3.5 million. It is charged at the rate of 20%.

Estate duty is levied on property of residents and South African property of non-residents less allowable deductions. The duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% above R30 million. A basic deduction of R3.5 million is allowed in the determination of an estate’s liability for estate duty, as well as deductions for liabilities, bequests to public benefit organisations and property accruing to surviving spouses.

Who is responsible for collecting Estate Duty?

SARS is responsible for collecting the Estate Duty.

How do I report a deceased estate to SARS?

Top Tip: Even if Estate Duty is not payable you have to inform SARS that the person is deceased.

An estate consists of all property of a deceased resident: moveable as well as immovable - including deemed property, such as life-insurance policies and payments from pension funds - whether situated in or outside RSA.